Use the following information for Questions 15 - 17: An employee worked the entire year of 2022 and earned two weeks of vacation as specified in the company's labor agreement. The agreement also states that the two weeks of vacation shall be taken any time in 2023 and the amount paid will be 80 hours multiplied by the employee's rate of pay at December 31, 2022. At December 31, 2022 the employee's pay rate was $15. Assume that the company uses the accrual method of accounting.

15.Which financial statements are affected in the year 2022?

Balance Sheet Only

Income Statement Only

Balance Sheet & Income Statement

Neither The Balance Sheet Nor The Income Statement

16. The amount that will be reported on the 2023 income statement as Vacation Expense for the vacation taken in 2023 is $

__________

17. When the employer pays the employee in 2023 for the vacation earned in 2022, what account will the company debit?

Cash

Vacation Expense

Vacation Payable